Crypto’s Growing Influence in US Elections
Cathie Wood, CEO of ARK Invest, discussed the growing influence of crypto in US electoral issues at the Consensus 2024 conference in Austin. She explained that the sudden approval of key documents for Ethereum Spot ETFs was due to the increasing perception of crypto as a significant electoral issue. Wood noted that the approval did not follow the usual process, with no prior questions from the SEC, which is unusual for such approvals.
The Political Implications of Crypto
Wood also commented on the evolving attitude towards the Financial Innovation and Technology for the 21st Century Act (FIT21), highlighting its recent bipartisan adoption as an indicator of its importance in an election year. She added that the increased interest in crypto from political figures, including former President Trump, who accepted campaign donations in crypto, likely influenced this dynamic.
Perspectives on Bitcoin and Solana ETFs
Regarding crypto-related financial products, Wood indicated that while a Solana Spot ETF may be approved in the future, meme coin-focused funds are unlikely as major brokerage firms and investment advisory companies would remain focused on the major cryptocurrencies. She also stated that ARK’s recently approved Bitcoin ETF from 21Shares is not designed to generate profits. The goal is to make the ETF as accessible as possible by maintaining very low fees. ARK also plans to allocate a percentage of its private fund revenues to support Bitcoin developers, ensuring ongoing support regardless of the ETF’s profitability.
Bitcoin versus Ethereum
When asked if she prefers owning BTC or ETH, Cathie Wood doesn’t hesitate:
Bitcoin, by far. There’s no doubt about it. It’s a global monetary system. It’s technology and a new asset class. They are three big ideas in one, and no other crypto competes with it.
Cathie Wood
Lastly, while Ethereum is currently receiving attention with the progress in ETF approvals, Wood firmly remains in favor of Bitcoin. She describes it as a global monetary system, technology, and a new asset class, representing three big ideas in one. According to her, no other crypto rivals Bitcoin, and she sees its price reaching $1.5 million by 2030.
